In a significant legal move, the American membership-based warehouse retailer Costco has filed a lawsuit against the administration of former President Donald Trump. The company is demanding a full refund for tariffs it has paid on imported goods, challenging the legality of the trade measures.
Legal Battle Over Trump-Era Tariffs
The lawsuit was filed on Friday, the 29th of November, in the US Court of International Trade. According to documents reviewed by the AFP news agency, Costco's legal team argues that the tariffs imposed during Trump's presidency are illegal. While the suit does not specify the exact amount sought, it covers tariffs paid since the measures took effect early in Trump's term.
This action positions Costco as the largest US company to directly challenge the tariffs, which were a cornerstone of Trump's "America First" trade policy. The former president argued the tariffs were necessary to correct a chronic trade imbalance and to exert diplomatic pressure on trading partners.
Broader Constitutional Challenge
Costco is not alone in its fight. Several other businesses and states led by the Democratic Party have lodged similar complaints with the same court. Their central argument is that the tariffs are unconstitutional because the power to levy them rests with the US Congress, not the presidency. It is important to note that these particular complaints do not address sector-specific tariffs, such as those on automobiles and steel.
The legal landscape is already shifting. The US Court of International Trade has previously ruled that tariffs imposed by Trump using emergency powers were illegal. This decision was later upheld by the US Court of Appeals. Despite these rulings, the tariffs remain in force pending a final decision from the highest court in the land.
Awaiting the Supreme Court's Final Word
The US Supreme Court is now the focal point. During a hearing in early November, the justices expressed skepticism about the legality of some of the tariffs. However, in its legal filing, Costco has voiced a specific concern: even if the Supreme Court rules the tariffs illegal, there is no guarantee the company will be reimbursed for the millions already paid to US tax authorities.
While awaiting the Supreme Court's decision, other major corporations have followed Costco's lead. Notably, the US subsidiary of Japanese automaker Toyota has also filed a similar lawsuit, indicating a growing corporate revolt against the tariff regime. The outcome of these cases could have profound implications for US trade policy and the separation of powers.
